There are a few good reasons why it makes ample sense to register your tiny. The first basic reason is to safeguard One Person Company Registration in India online‘s own interests and is not risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if the company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes managed their shares to another it’s easier when enterprise is authorized.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, in case business idea is good enough to be converted to a profitable business or never ever. And if the answer to the confident which has a resounding yes, then then it’s time for in order to go ahead and register the startup. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the actual and the way you want to inflate it, your startup can be registered among the many legal formats of the structure in a company on the market.
So i want to first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only individual. No registration becomes necessary. This is the method to adopt if you should do it on your own and the goal of establishing firm is to attain a short-term goal. But this puts you prone to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. For a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust concerning the partners. But similar the proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that the company is a separate legal entity that effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally liable to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 using a maximum maximum of fifty five. The number of directors must be 2.